Exclusive books: applying a behavioural economics perspective

2020 ◽  
Vol 10 (3) ◽  
pp. 1-30
Author(s):  
Thiroshnee Naidoo ◽  
Charlene Lew
Keyword(s):  
Decision Making ◽  
Learning Outcomes ◽  
Consumer Choice ◽  
Behavioural Economics ◽  
Choice Overload ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
The Impact

Learning outcomes The learning outcomes are as follows: understanding of the principles of choice overload and the impact of consumer choice overload on company sustainability and growth prospects; understanding of how several heuristics inform consumer decision-making; applying nudge theory to interpret and clarify the impact and consequences of nudges on consumer decision-making; and considering the challenge of a newly appointed CEO to influence consumer choice. Case overview/synopsis The case study and teaching note offers insights into the use of behavioural economics principles in consumer choice. The case study methodology was used to design, analyse and interpret the real-life application of behavioural economics in the retail sector. The case demonstrates how choice overload, dual process theory, decision heuristics and nudge theory play a role in consumer decision-making. The case offers insights into the application of behavioural economics to support the sustainability of a company in an emerging market context. Managers can use the findings to consider how to use behavioural economics principles to drive consumer choice. The application of behavioural economics to an industry facing challenges of sustainability offers new insights into how to design spaces and cues for consumer choice. Complexity academic level The case study is suitable for course in business administration, specifically at postgraduate level. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing

scholarly journals The impact of product presentation on decision-making and purchasing

2019 ◽  
Vol 22 (3) ◽  
pp. 365-380 ◽  
Author(s):  
Rosy Boardman ◽  
Helen McCormick
Keyword(s):  
Decision Making ◽  
Eye Tracking ◽  
Visual Information ◽  
Age Groups ◽  
Target Market ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Product Presentation ◽  
The Impact

Purpose This paper aims to investigate how apparel product presentation influences consumer decision-making and whether there are any differences between age groups. Design/methodology/approach A mixed methodology was used including eye-tracking and qualitative in-depth interviews, with a purposive sample of 50 participants between age 20 and 70. Findings A higher number of product presentation features resulted in increased positive visual, cognitive and affective responses as consumers wanted as much visual information as possible to aid decision-making. Images of models attracted the most attention and were the most influential product presentation feature, followed by mannequin images and the zoom function. The 20 s spent much less time viewing and interacting with the product presentation features than middle age groups (30 s-50 s), had minimal fixations on mannequin images and had a much quicker decision-making process than other age groups. Practical implications The research informs retailers which product presentation features are the most effective for their target market to aid consumer decision-making with the aim of reducing returns. Originality/value The paper contributes to the literature by providing more in-depth insights than previous studies into the impact of online product presentation on consumer decision-making by using qualitative research and eye-tracking. The research also explores more product presentation features than previous research and investigates the presentation of apparel products, which are notoriously the most difficult products for consumers to assess online. The research is unique in its exploration of age differences in relation to product presentation features.

A materialistic perspective of consumer decision-making styles

2019 ◽  
Vol 12 (2) ◽  
pp. 231-248
Author(s):  
Sartaj Chaudhary ◽  
Ajoy Kumar Dey
Keyword(s):  
Decision Making ◽  
School Children ◽  
Negative Impact ◽  
Second Order ◽  
Theory And Practice ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Decision Making Styles ◽  
The Impact

Purpose Materialism has become a topic of increasing interest to researchers and policymakers because it can influence consumer behavior. However, a clear picture of how this phenomenon impacts consumers has proven to be elusive. Using an integrated framework, this paper aims to derive hypotheses from theoretical concepts of materialism and consumer decision-making styles and uses a survey of 1,216 respondents in India to test the hypotheses. Design/methodology/approach The present study is the first of its kind to test the impact of materialist values on consumer decision-making styles among a sample of 13-18 years old school children. The constructs are validated through a first- and second-order confirmatory factor analysis and an integrated second-order structural model is developed. Findings This study finds that materialism is a positive predictor of “recreation/ hedonistic”,; “confused by over-choice”; “brand consciousness”; “perfectionistic high-quality consciousness”; and “habitual brand loyal” style of consumers. Further, materialism has a negative impact on “price value consciousness” of consumers. These findings have important implications for theory and practice. Research limitations/implications This study is restricted to school children in the National Capital Region and hence cannot be generalized to the whole young population in India. Originality/value Conceptualizing both materialism and consumer decision-making styles as second-order constructs, this is a maiden study that examines the impact of materialistic values on the consumer decision-making styles of young consumers.

Influence of aggregated ratings on purchase decisions: an event-related potential study

2018 ◽  
Vol 52 (1/2) ◽  
pp. 147-158 ◽  
Author(s):  
Yongchao Shen ◽  
Wei Shan ◽  
Jing Luan
Keyword(s):  
Decision Making ◽  
Online Shopping ◽  
Event Related Potential ◽  
Behavioral Data ◽  
Consumer Decision Making ◽  
Neural Basis ◽  
Consumer Decision ◽  
Content Type ◽  
Decision Making Processes ◽  
The Impact

Purpose In an online shopping environment, individual reviews and aggregated ratings are important anchors for consumers’ purchasing decisions. However, few studies have considered the influence of aggregated ratings on consumer decision-making, especially at the neural level. This study aims to bridge this gap by investigating the consumer decision-making mechanism based on aggregated ratings to uncover the underlying neural basis and psychological processing. Design/methodology/approach An event-related potential experiment was designed to acquire consumers’ electrophysiological records and behavioral data during their decision-making processes based on aggregated ratings. The authors speculate that during this process, review valence categorization (RVC) processing occurs, which is indicated by late positive potential (LPP) components. Findings Results show that LPP components were elicited successfully, and perceptual review valence can modulate its amplitudes (one-star [negative] and five-star [positive] ratings evoke larger LPP amplitudes than three-star [neutral] ratings). The electroencephalogram data indicate that consumer decision-making processes based on aggregated ratings include an RVC process, and behavioral data show that easier review valence perception makes the purchase decision-making easier. Originality/value This study enriches the extant literature on the impact of aggregated ratings on consumer decision-making. It helps understand how aggregated ratings affect consumers’ online shopping decisions, having significant management implications. Moreover, it shows that LPP components can be potentially used by researchers and companies to evaluate and analyze consumer emotion and categorization processing, serving as an important objective physiological indicator of consumer behavior.

Impact of Muslim decision-making style and religiosity on intention to purchasing certified halal food

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hardius Usman ◽  
Chairy Chairy ◽  
Nucke Widowati Kusumo Projo
Keyword(s):  
Decision Making ◽  
Online Survey ◽  
Positive Impact ◽  
Survey Method ◽  
Consumer Decision Making ◽  
High Quality ◽  
Consumer Decision ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to: build Muslim consumer decision-making style (MCDMS); analyze the influence of the consumer decision-making style on Muslim behavior to buy halal certified food; analyze the impact of religiosity on Muslim behavior in buying halal-certified food and study the role of religiosity in the relationship between MCDMS and Muslim behavior in buying halal certified food. Design/methodology/approach This study’s target population is the Muslim Indonesian population age at least 18 years old. The self-administered survey method is carried out based on convenience and snowball sampling techniques and the questionnaire is distributed online. This study collects data from 396 Muslim respondents in Indonesia through an online survey. Factor analysis and regression with interaction variables are applied to test the research hypothesis statistically. Findings This study reveals several results: MCDMS produces 10 dimensions; halal consciousness is an important dimension; the perfectionist/high-quality conscious and price-conscious, has a significant negative effect on the intention to buy halal-certified food; the halal consciousness and the recreational/hedonic conscious have a significant positive effect on the intention to buy halal certified food; religiosity has a significant positive impact directly on the intention to purchase halal-certified food; Religiosity positively moderates the impact of a perfectionist/high-quality conscious and price-conscious on the intention to buy halal-certified food. Originality/value This paper will build an MCDMS by adding the dimensions of halal consciousness. The author has not found literature about MCDMS. This research will also study the impact of MCDMS and religiosity on the intention to buy halal-certified food, as well as will study the role of religiosity in relationships between Muslim decision-making styles and intention to buy halal-certified food. Similar research is still very limited in marketing literature.

The influence of price and promotion on package size propensity

2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh
Keyword(s):  
Decision Making ◽  
Product Category ◽  
Relative Price ◽  
Grocery Stores ◽  
Consumer Decision Making ◽  
Content Type ◽  
Household Level ◽  
Packaged Goods ◽  
Package Size ◽  
The Impact

Purpose The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size. Design/methodology/approach Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing. Findings The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages. Research limitations/implications Data were obtained from grocery stores; only a single product category was studied. Practical implications Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions. Originality/value The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.

scholarly journals An Extended Model of Behavioural Process in Consumer Decision Making

2016 ◽  
Vol 8 (4) ◽  
pp. 87 ◽  
Author(s):  
Nagasimha Balakrishna Kanagal
Keyword(s):  
Decision Making ◽  
Consumer Products ◽  
Extended Model ◽  
Response Model ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Stimulus Response ◽  
Economic Decision Making ◽  
Buying Behaviour ◽  
The Impact

<p>The stimulus response model of consumer behaviour is useful to understand the buying behaviour of individual consumers in the context of individuals buying consumer products. An extended stimulus-response model of behavioural processes in consumer decision making is proposed that serves to integrate the influences and interlinkages of buyer psychology, various buyer characteristics, and the impact of the buyer decision process on consumer decision making. The model proposes that the behavioural process of consumer decision making be as a result of the interaction of three aspects of individual buyer behaviour: communication sensitivity; enculturated individuality; and rational / economic decision making. The paper addresses the flip side of the consumer decision making process in terms of the five stages of decision making from need recognition to post-purchase satisfaction. An aggregate level framework of behavioural process in consumer decision making has been provided, that could lead to a richer analysis of micro level factors and relationships influencing consumer decision behaviour.</p>

scholarly journals Studi tentang Motivasi ARMY Jakarta dalam Membeli Merchandise Idola (Studi Kasus Kaos Uniqlo X BT21)

Prologia ◽  
2020 ◽  
Vol 4 (1) ◽  
pp. 128
Author(s):  
Johanna Ruthllianie ◽  
Diah Ayu Candraningrum
Keyword(s):  
Decision Making ◽  
Parasocial Interaction ◽  
Decision Making Process ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Consumer Motivation ◽  
Individual Motivation ◽  
Public Figures ◽  
The Individual

This research attempts to adopt the individual motivation behind the decision in purchasing an idol merchandise. In addition the resources focused on the concept of consumer motivation and the consumer decision making process. The concept of motivation includes sources of motivation, divided into motivational intrinsic and motivation extrinsic. While the consumer decision-making process is divided into five steps which are recognized the need, looking for information, evaluation of decision, buying decision, and the consumer behavior after purchasing. The researcher uses a case study of the shirt Uniqlo X BT21 with qualitative method. The results of the research which is the consumer motivation lead to purchasing a Uniqlo X BT21 shirt. Parasocial interaction in fact can influence consumers to purchase merchandise. The more closely the relation between society can lead to higher motivation to purchase the needs. The collaboration between Uniqlo and BTS succeeds in attracting the fans. The results of collaboration between brand and public figures now is a strategy for creating promotional products. Entrepreneurs, who also use this strategy need to see the opportunity by using this phenomenon. Penelitian ini mengangkat tentang motivasi individu dalam keputusan pembelian merchandise idola. Konsep yang digunakan yaitu motivasi dan keputusan pembelian. Konsep motivasi meliputi sumber motivasi, yaitu melalui motivasi intrinsik dan motivasi ekstrinsik. Sedangkan untuk keputusan pembelian melalui lima tahapan yaitu, mengenali kebutuhan, pencarian informasi, evaluasi alternatif, keputusan pembelian dan perilaku pasca pembelian. Penelitian ini menggunakan studi kasus terhadap kaos Uniqlo X BT21 dengan metodologi kualitatif. Hasil penelitian ini yaitu motivasi yang menyebabkan pembelian kaos Uniqlo X BT21. Interaksi parasosial terbukti mampu untuk mempengaruhi pembelian merchandise. Semakin lekat sebuah hubungan parasosial, maka akan semakin tinggi motivasi minat beli. Kolaborasi yang diadakan Uniqlo dengan BTS dapat dikatakan berhasil menarik minat penggemar. Sehingga kolaborasi merek dan public figure kini merupakan sebuah strategi yang dapat dilakukan untuk mempromosikan produk. Pebisnis perlu melihat peluang yang hadir dalam fenomena tersebut.

Sew or purchase? Home sewer consumer decision process

2018 ◽  
Vol 22 (2) ◽  
pp. 176-188
Author(s):  
Addie Martindale ◽  
Ellen McKinney
Keyword(s):  
Decision Making ◽  
Geographic Area ◽  
Decision Making Process ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Female Consumers ◽  
The North ◽  
Starting Point ◽  
Consumer Dissatisfaction

Purpose The purpose of this paper is to explore garment consumption decision processes of female consumers when they have the option to sew or purchase their clothing. Design/methodology/approach This research study presents a segment of the findings from a larger qualitative grounded theory study on women who choose to sew clothing for themselves (Martindale, 2017). This research analyzed the interview data pertaining to the unique sew or purchase decision-making process in which these consumers undertake as well as the related control over ready-to-wear consumption that sewing provides them. Findings The ability to sew resulted in a unique consumer decision-making process in regard to the clothing purchases due to the control it provided them over their ready-to-wear consumption. The women developed factors that they used to make the decision to sew or purchase. Over all the ability to sew provided them the option to sew or purchase clothing, allowing the women more control over their clothing selection specifically in regard to the garments body fit. Research limitations/implications This study was limited to English-speaking women living in the North America. The qualitative data collected are specific to this sample which cannot be generalized to all female home sewers. Research involving a larger population of women from a larger geographic area is needed. Practical implications The newly developed sew or purchase model provides an understanding of the control that having the option to sew or purchase provides female consumers. The findings offer apparel industry professionals a new perspective on ready-to-wear consumer dissatisfaction. The investment that is made when a garment is sewn instead of purchased has the potential to increase wardrobe sustainability as the consumer experiences more attachment to the clothing they have made. The model serves a starting point for further exploration into other craft-related consumer decision behaviors. Originality/value Purchasing decisions of this nature have yet to be considered in published research. Exploring these women’s decisions who operate outside of typical consumer culture and developing a model for this consumer behavior explains a phenomenon not yet addressed by existing consumer consumption research.

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